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November 7, rgoS
RECOKD AND GUIDE
869
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Bt/sii^ESs Alio Themes ofG'eHeraI Ii^terest.
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Communications should be addressed to
C. W, SWEET
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By THE KECORD AND GtllDE CO.
President, CLINTON W. SWEET Treasurer. F, W. DODGB
Vice-Pres. & Genl, Mgr,. H. W. DESMOND Secretary, F. T. MILLER
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Copyrighted, IOOS. by The Record & Guide Co.
Vol. LXXXII.
November 7, 1908.
No. 2121
THE year 1"908 has not been a period in which business in
many lines has showed an increase in gross over tbe
year before, but something of that kind has occurred in re¬
spect to building operations in Manhattan. The plans flled
for new Manhattan buildings during the flrst ten months of
1908 call for an expenditure of about $72,000,000; while
during 1907 the corresponding total was less than |71,000,-
000. The increase is not large, but it is significant, because
nothing of the sort is to be observed in the other boroughs.
The Bronx has, indeed, held its own fairly well, the plans
for the current year demanding an expenditure of $14,000,-
000 against $18,000,000 in the corresponding period of 1907,
and this difference may be largely accounted for by the de¬
creased cost of construction, which has amounted to fully
20 per cent. Brooklyn is the borough which has fared the
worst, inasmuch as the activity of its building operations has
diminished by one-half. In the case of Manhattan, the good
showing is the result of the large number of very expensive
improvements which have been projected. In the first ten
months of 1908 the total of Manhattan buildings, for whicb
pians were filed was only 529, which made the average cost
of each projected building reach the enormous total of $135,-
000. During the corresponding month of 1907 the total
number of new buildings projected was 884, and the average
cost about $80,000. This comparison tells the story with
startling distinctness. Plans were filed for two buildings
whose aggregate cost was no less than $18,000,000, just
about one-fourth of the total estimates; and there were sev¬
eral more whose probable cost ran into the several millions.
It should be added, of course, that there is no certainty as
yet that the largest of these buildings, belonging to the
Equitable Life Assurance Society, will ever be constructed.
But even omitting the $10,000,000 represented by the plans
of this mammoth structure, there has really been a greater
volume of construction in 1908 than in 1907, because the
figures for 1908 are based upon a much lower cost of con¬
struction. During the earlier part of the year the erection
of the most popular single type of building, viz., the tene¬
ment house, was practically dead, but there has of late been
a substantial revival in this class of building. Even if dur¬
ing the coming year a diminution is to be anticipated in the
amount of high-class construction, there wiil he a consider¬
able augmentation in the building of tenements and of the
cheaper grade of miscellaneous edifices.
THE filing of plans for a twelve-story loft building to be
erected on the site of the Putnam House, at Twenty-sixth
street and Fourth avenue, affords the flrst explicit indication
of the future development of the part of Fourth avenue north
of Twenty-third street. For years that section of the ave¬
nue has been practically undisturbed by building operations,
and the only branch of business which particularly sought
the neighborhood was the retail trade in old furniture. But
although there have been no new buildings erected, real
estate on the avenue from Twenty-third to Thirt-y-fourth
street has shown a good deal of activity, and prices have
been advancing. It has been recognized that these blocks
were destined to be used for important business purposes;
and the only question has been, what kind of business will
occupy the avenue? In case a terminal for the New Haven
Railroad had been built at .Thirty-second street, it is prob¬
able that a strong motive would have existed for retailers
to occupy the best sites immediately to the south of Thirty-
second street, but now that this plan, if it ever existed, has
apparently been abandoned, there can be little doubt that
during tbe next ten years Fourth avenue north of Twenty-
third street will duplicate the history of Fifth avenue be¬
tween Twenty-third and Fourteenth streets. We understand
that other building projects similar to the one already an¬
nounced are under consideration. The fact is that above
Twenty-third street the wholesale trade must necessarily
spread north in a somewhat different direction from the one
it has taken south of Twenty-third street. The growth of
Fifth avenue from Twenty-sixth street north as a retail
thoroughfare, and the high level of real estate values results
ing therefrom has driven a wedge ipto what would other¬
wise have been a continuation of the wholesale district. The
wholesale trade will be divided by this wedge and will spread
out over a larger area to the east and the west. There are
already a great many new loft buildings under construction
north of Twenty-third street, between Broadway and Seventh
avenue, and now it looks as if a corresponding development
would take place to the east of Fifth avenue, at least as far
as Fourth avenue. Indeed, we believe that Fourth avenue
will become the most important thoroughfare devoted ex¬
clusively or chiefly to the wholesale trade north of Twenty-
third street. Its great width adapts it admirably to such
a purpose. Twelve and fifteen-story buildings can he erected
without interfering with each other's light; and there will
be more than the usual amount of room for the free move¬
ment of trucks. It still remains an open question whether
Madison avenue, between Twenty-sixth and Thirty-fourth
streets will prove to be more profitable for retail or whole¬
sale trade; but now that the erection of loft buildings on
Fourth avenue has begun, it seems to the Record and Guide
that Madison avenue is more likely to become a retail thor¬
oughfare. The high prices prevailing on Fifth avenue and
the huge demand still existing for additional store sites in
that vicinity will probably lead during the next few years
to the location of many important retail shops on Madison
avenue.
THE RE-ELECTION of Governor Hughes has an impor¬
tant bearing on the most vital problem connected with the
growth of New York City—the problem of rapid transit. It
will be remembered that a bill designed to facilitate the in¬
vestment of private capital in new subways was passed by
the legislature at its last session only to be met with a veto
at the hands of the Governor. In case Mr, Chanler had been
elected, it might have been worth while to pass the Robinson
bill once more in the hope that it would meet with a kindlier
reception in the Executive Mansion, but the issue of the
election has definitely closed this possible means of accelerat¬
ing new rapid transit construction. The Governor is not a
man to change his mind; and it will be a mere waste of time
to send the Robinson bill to him again. His objections to
that measure were not based upon its details. They were
based upon the principle of seeking to tempt private capital
into the work of subway construction by the offer of easier
terms and longer franchises. Consequently, the only prac¬
ticable course remaining open to the people interested iu
securing the early building of new subways is active work
for the purpose of removing obstacles to municipal construc¬
tion. The chief obstacle is, of course, the inability of the
city to borrow more than ten per cent, of the assessed valu¬
ation of its real estate; and fortunately, that obstacle can be
easily if not quickly removed. The legislature has already
passed a hill submitting to popular vote a constitutional
amendment enabling the city to borrow as much money as
it really needs for subway construction. That bill has to
be passed again at the coming legislative session; and then
it can be voted upon just a year from now. This delay of
a year is unfortunate, but it cannot be helped, and there
will be compensation for the delay. The city will retain
much completer control over its subway system than it would
under any other conditions, and it will be in a far better
position to benefit from the increased value of any new sub¬
way route which may be constructed. In the meantime cer¬
tain necessary steps may be taken in anticipation of the
day when the city will be free to go ahead. The Belmont
tunnel can be purchased and arrangements can be made to
give it a better terminal in Manhattan. Negotiations can
be taken up with the New Haven Railroad in order to find
out precisely what it is willing to do in order to obtain a
satisfactory entrance into Manhattan, Finally, a general
plan of subway development can he mapped out, so that any